S&P changes San Jose Water view

S&P said it revised the outlook on San Jose Water Co. to negative from stable.

At the same time, the agency affirmed the ratings on the company, including the A issuer credit rating and the A issue-level rating on its senior unsecured debt.

S&P said the revision follows the California Water Service Group's recently announced cash tender offer to acquire SJW Group.

In addition, Connecticut Water Service Inc. recently amended the terms of its merger agreement with SJW Group, including a go-shop process, actively soliciting proposals for an alternative transaction from third parties, including Eversource.

“The negative outlook reflects the increased event risk associated with both CTWS' recently amended merger agreement with SJWG and the proposed cash tender offer by CWSG, suggesting the possibility that SJWG's previously agreed-upon merger agreement with CTWS may not close as expected,” S&P said in a news release.

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